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DE’LONGHI DOUBLES SALES

De’Longhi is one of the leading global brands for home appli­ances, partic­u­larly recog­nized for their coffee makers.

In order to increase sales and aware­ness for selected De’Longhi premium coffee makers in the Russian market, the Italian brand decided that a discount promo­tion would not be the best way to market premium prod­ucts and stand out from their ever increasing compe­ti­tion.

De’Longhi there­fore part­nered with RIX REWARDS to create a reward-based sales promo­tion that would appeal to the audi­ence and create a stronger marketing shout.

WHAT WERE THE GOALS?

Together with De’Longhi we iden­ti­fied three main targets for the reward-based sales promo­tion.

The brand had a budget of about 10% of the product value, which they would usually use to grant a 10% discount on their coffee makers.

Increase Sales & Market Share

Increasing sales and market share in the Russian market was the main objec­tive.

Increase Awareness

With a strong compe­ti­tion for premium coffee makers, the brand needed a stronger message than the compe­ti­tion to capture aware­ness.

Improve POS Placements

Getting better POS place­ment with retailers was another goal for the campaign.

WHAT WAS THE REWARD?

Knowing the budget constraints and the goals, we came up with a reward that would have a high perceived value for a target audi­ence eager to travel to inter­na­tional desti­na­tions.

A free flight reward seemed to be the best fit for this campaign. The message “Buy a premium De’Longhi coffee maker and fly for free!”

6 Departure Airports

Customers could choose between 6 depar­ture airports across Russia

38 Destination Cities

Customers could also choose one of 38 desti­na­tion cities across Europe and Asia.

The costs for the brand was less than 10% of the product value. For their premium coffee makers the list price varied between 400 – 1000 Dollars. Due to the mechanics of the reward campaign, we calcu­lated a price for a free-flight of 48 Dollars. De’Longhi had full budget-safety as RIX guar­an­teed this price and took over the risk of redemp­tions beyond expec­ta­tions.

The value percep­tion for an inter­na­tional flight, starts at 200 Dollars. A 10% discount can simply not compete with such value.

WHAT WERE THE RESULTS?

The promo­tion exceeded all expec­ta­tions. All three objec­tives set in the begin­ning of the campaign were achieved. Not only did the brand almost double sales and increase market share, but due to increased interest by consumers in the brand they also received premium place­ments with retailers long after the campaign.

+82% Increase in Sales

De’Longhi increased sales by 82% compared to the campaign period of the previous year.

+26% Increase in Market Share

The brand was able to conquer a plus of 26% in rela­tive market share within the campaign time­frame.

HOW DID THE CAMPAIGN LOOK?